WASHINGTON (AP) — The number of newly laid-off workers filing initial claims for jobless benefits rose unexpectedly last week, evidence that layoffs are continuing and jobs remain scarce.
The rise is the fourth in the five weeks. Most economists hoped that claims would resume a downward trend that was evident in the fall and early winter.
The Labor Department says that new claims for unemployment insurance rose by 8,000 to a seasonally adjusted 480,000. Wall Street economists had expected a drop to 460,000.
The four-week average, which smoothes fluctuations, rose for the third consecutive week. The number of people continuing to claim benefits was unchanged at 4.6 million.
In a separate report, the Labor Department said that worker productivity rose more than expected in the fourth quarter as companies squeezed more output from their employees.
Productivity rose by a seasonally adjusted 6.2 percent in the fourth quarter, above analysts’ expectations of a 6 percent rise.
The increase follows two quarters of sharply rising productivity. Overall, productivity has risen 5.1 percent in the last four quarters, the most since the 12 months ending with the first quarter of 2002.
Productivity often rises at the end of recessions as companies ramp up output before hiring new workers. Rising productivity can raise living standards in the long run. But it can also make it easier for companies to postpone new hiring.
Comments
Post a comment
(Requires free registration.)